Daily Israel Report

Israeli Company to Supply Fuel to US Army in Iraq

First Publish: 2/24/2004, 9:10 PM / Last Update: 2/24/2004, 10:44 PM

Israel’s Sonol gasoline company, along with its foreign partner Morgantown International, have won a tender valued at $70-80 million to supply fuel to US troops in Iraq. Sonol is expected to supply the US forces with some 25 million liters of fuel each month.

The tender was issued by the US-based KDR Company, a subsidiary of Halliburton, who has been entrusted with the majority of contracts for the US troops in Iraq. Among Sonol’s competitors was Delek, another Israeli company. Until now, the US forces have received most of their fuel from Kuwait. However, following Halliburton’s admission that it overcharged the US military by passing on the Kuwaitis' inflated price the US Army decided to approach other suppliers, among them Israel.

Sonol is one of Israel's three largest oil product marketing firms with a network of around 205 branded service stations.

Fuel, imported to Israel, will pass through the fuel terminal operated by the TASHAN (Oil and Energy Infrastructure Company) north of Beer Sheva and will then be shipped to Iraq by land through Jordan.